Banking News

The prospect of record low savings rates continuing is forcing many savers to review how they allocate their capital in an attempt to achieve the level of returns they have previously enjoyed. Investing in the stock market inevitably involves putting your capital at risk however there is a middle ground which continues to attract increasing interest – the structured deposit. With this in mind, we take a deeper look at this savings alternative to help understand why more and more savers are starting to see their appeal. more

With the current economic environment asking savers far more questions than it gives answers, it is good to know that there are alternatives available. We take a look at one such alternative that is proving particularly popular as savers face the harsh reality that the more traditional fixed rate savings products are failing to meet their needs. more

Millions of savers are facing the harsh realisty that there is little hope of change to interest and savings rates in the coming years. However, those with Cash ISAs do have one further option to consider – the ISA transfer. We take a closer look at why this is becoming a rising trend as well as what this could mean for those looking for the potential to improve the returns from their capital. more

With so many savers joining income investors in the hunt for high yields, being able to quickly understand and compare the numerous options available has become even more important. We therefore compare two of our most popular income investments to help understand what is driving their popularity and why they might meet your income needs. more

Budget for savers and first time buyers calls Nationwide

21 April 2009 / by Rebecca Sargent

Chancellor Alistair Darling should remember savers and first time buyers in his Budget announcement tomorrow, Nationwide has said.

Recent research from the building society found that 70 per cent of the UK's population are still failing to make full use of the tax incentivised ISA system, which is why Nationwide is calling for reform.

Changes that Nationwide proposes to the ISA system include increasing the maximum ISA subscription limit from £7,200 to £8,735 to combat inflation since the ISA was launched 10 years ago, allowing savers to withdraw and replenish their ISA allowance during each tax year, and increasing the cash ISA limit to match the stocks and shares ISA limit.

Commenting, Graham Beale, Nationwide's chief executive, said: "We would like to see changes implemented that make it easier and more worthwhile for consumers to make full use of their tax-free savings allowance.

"Increasing the ISA subscription limit to counter the effect of inflation over the past ten years would provide an added incentive for consumers to save, while increasing the flexibility of ISAs would offer greater support to those consumers who need to dip into their savings or those who are currently struggling to save their full allowance."

Meanwhile, Nationwide also recognises that first time buyers need a helping hand, and is consequently proposing a review of stamp duty. Reforms proposed include an increase in the nil rate threshold to £250,000, with a flat rate of one per cent applied above this limit, and a fundamental review of stamp duty over the next 12 months.

Mr Beale added: "We believe increasing the threshold to £250,000, and linking it to inflation going forward, will stimulate the housing market and help reduce the burden that stamp duty places on first time buyers in particular.

"The time is now right for reform, as the current low level of housing market transactions means such changes would have a lesser impact on tax revenues than at the height of the market."

Reports today suggest that the housing market will also receive a £1billion boost, as Darling is expected to announce help for the construction industry tomorrow.